Forbo Holding Ltd

Latest Results (16.07.2026):

Forbo Holding Ltd — first half of 2025 (covering Q1 and Q2 2025): the Group reported net sales of CHF 546.9 million (down 1.5% in local currencies, –4.1% in reporting currency). Operating profit (EBIT) fell to CHF 42.9 million (H1 2024: CHF 61.8m) and profit to CHF 33.4 million (H1 2024: CHF 48.4m), driven by lower volumes, under‑utilized capacity, inflationary personnel costs and negative currency effects; management expects a slight full‑year sales decline (local currencies) and a modestly better H2 profit versus H1 but a significant full‑year profit decline versus 2024.

Key headline numbers

Net sales CHF 546.9m (H1 2024: CHF 570.3m); EBITDA CHF 67.6m (–22.1% y/y) and EBITDA margin 12.4% (prior 15.2%); EBIT CHF 42.9m (prior CHF 61.8m); profit CHF 33.4m (–31.0%); basic EPS CHF 23.70 (prior CHF 34.36). Currency conversion reduced net sales by ~CHF 15m and EBIT by ~CHF 1m.

Divisional performance

Flooring Systems: net sales CHF 374.9m (–1.4% local), EBIT CHF 37.7m and EBIT margin 10.1% (prior 12.4%) — resilient performance despite weak construction demand. Movement Systems: net sales CHF 172.1m (–1.9% local), EBIT CHF 8.9m and EBIT margin 5.2% (prior 10.0%) — marked underperformance from lower volumes and under‑absorbed fixed costs.

Balance sheet and liquidity

Solid equity position: shareholders’ equity CHF 607.6m and equity ratio 63.5% (year‑end 2024: 64.1%). Reported net cash CHF 34.2m (year‑end 2024: CHF 109.1m); cash and cash equivalents CHF 41.7m at June 30, 2025. Treasury shares valued at CHF 59.6m (end‑June price).

Cash flow and drivers of cash decline

H1 operating cash flow negative CHF 14.6m (vs +21.6m prior year). Investing cash outflow CHF 15.8m; financing outflow CHF 36.1m (including dividend payment CHF 35.3m). Net change in cash –CHF 66.5m, mainly seasonality, dividend, higher working capital and capex.

Costs, pricing and margins

Earnings were pressured by lower volumes, inflation‑driven personnel cost increases and adverse FX; lower raw material prices helped only partially. Movement Systems saw price increases partially offset by volume declines; Flooring experienced unfavorable price development overall but benefited from product‑mix shifts and efficiency measures.

Innovation, sustainability and product momentum

Forbo continued product launches (e.g., Modul’up, Eternal Next, Marmoleum Solid) and expanded ESG reporting (quarterly Scope 1–3 measurement). Movement Systems moved to renewable electricity and improved energy efficiency; Flooring advanced sustainability targets and capacity expansion (Flotex Hazleton, PA).

Operational actions and outlook

Management is pursuing targeted investments in sales, digitalization, supply‑chain projects and capacity for customized products; Movement Systems is reshoring/adjusting production (US, Japan, China) to counter tariffs and supply issues. Guidance: slight y/y net‑sales decline (local currencies) for full year 2025; H2 profit expected to improve slightly vs H1 but full‑year profit materially down vs 2024, assuming no further macro/geopolitical deterioration.

Leadership changes

CEO Jens Fankhänel stepped down in April 2025 for health reasons; CEO search is in an advanced stage. CFO Andreas Jaeger will depart end‑October 2025 and a recruitment for his successor is underway; an interim CFO will be appointed to ensure continuity.